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U.S. dollar closes lower on Taipei forex (update)

U.S. dollar closes lower on Taipei forex (update)

Taipei, March 3 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.060 to close at NT$31.508 in the wake of further foreign institutional buying in the local bourse, dealers said. A rebound by other regional currencies, such as the Australian dollar, the Japanese yen and South Korean won, added downward pressure on the U.S. dollar after the Australian central bank left its key interest rates unchanged, dealers said. However, the losses suffered by the U.S. dollar were limited by the local central bank's continued intervention to help protect Taiwanese exports, which pushed the U.S. currency to recoup most of its earlier losses by the close of trade, dealers said. The greenback opened at the day's high of NT$31.570, and fell to a low of NT$31.350 before rebounding. Turnover totaled US$779 million during the trading session. The U.S. dollar opened higher on follow-through buying, but soon dipped into negative territory as foreign institutional investors continued to pick up shares in the local equity market, which boosted demand for the Taiwan dollar, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net 3.92 billion (US$124 million) worth of local shares on the main board as several major central banks pumped funds into the market to help boost the economy. In addition, traders here were encouraged by the strength of other regional currencies to raise their holdings in the Taiwan dollar throughout the trading session, dealers said. The interest in buying regional currencies was sparked by the Reserve Bank of Australia's (RBA) surprise decision to keep its key interest rate steady at 2.25 percent, dealers said. The U.S. dollar fell below the NT$31.40 mark at one point, which prompted the local central bank to enter the trading floor in a bid to prop up the greenback, dealers said. It appears that the local central bank would prefer to keep the U.S. dollar above the 31.50 level in the short term in an effort to help Taiwan companies maintain their global competitiveness, dealers said. (By Frances Huang)


Updated : 2021-09-26 10:52 GMT+08:00